Value of UK venture capital funding deals halves in 2023
Despite this year-on-year decline the UK remained a core market for VC fundraising, maintaining its spot as the lead European market on this metric and in the top five globally.
The UK witnessed 898 venture capital funding deals in the first eight months of 2023, a 27.2% drop in volume compared to the same period in 2022, according to research by GlobalData.
Funding deals totalled $8.7bn for the period, registering a 52.6% decline versus the same period last year, a «significantly steeper» fall, the group said.
In comparison, the UK saw the announcement of 1,233 venture capital funding deals between January and August 2022, at a disclosed value of $18.3bn.
VCTs prove resilient against wider venture capital industry decline
Despite the year-on-year decline, the UK remained a core market for VC fundraising, maintaining its spot as the lead European market on this metric and in the top five globally.
According to the data, the UK accounted for 6.5% of the total number of VC deals announced globally during January to August 2023, and its share of the total disclosed funding value stood at 5.4%.
Among the deals made were $602m raised by fintech firm Abound, as well as the $250m secured by app building platform Builder.ai, $250m for investing app eToro, $140m by autonomous vehicle software company Oxbotica, $136m worth of fundraising by consumer electronics waste recycling firm Raylo Group and $100m secured by web security and AI firm ZYBER 365.
Aurojyoti Bose, lead analyst at GlobalData, said the fall in deal volume and value could be attributed to the «macroeconomic challenges and the ongoing geopolitical tensions».
MPs call for Treasury to set out clear plans on EIS and VCT extension
Bose added: «The UK continues to
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